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Raytheon (RTN) Gets $288M Navy Contract for CIWS Upgrade
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Raytheon Co. has secured a U.S. Navy contract to continue to provide conversion, system overhaul and upgrade services as well as related hardware for MK 15 Close-In Weapon Systems or CIWS.
This modification contract, worth $288 million, will include purchases for the Navy and foreign allies comprising governments of Turkey as well as Australia, under the Foreign Military Sales (“FMS”) program. Raytheon is slated to complete work under this contract by Dec 2022.
CIWS is an automatic terminal defense weapon system that is designed to detect, track, engage and destroy anti-ship missile threats penetrating outer defense envelopes. It has two variants – Phalanx and SeaRAM – in which the former utilizes a six-barrel Gatlin gun while the latter replaces the gun with an 11-round Rolling Airframe Missile guide.
The Phalanx type of CIWS is currently installed on Navy and Coast Guard ships, and is also in use among foreign allies.
Raytheon has a distinct focus on its overseas business. The company has been witnessing a steady rise in international sales over the past few years. International bookings comprised 31% of total company bookings in the second quarter of 2016. International sales increased 8% in the quarter while 42% of the total backlog was from international customers.
Raytheon reported second-quarter 2016 adjusted earnings from continuing operations of $1.75 per share, beating the Zacks Consensus Estimate by 2.9%. Earnings also increased 6.1% from the year-ago figure. The company’s top line surpassed the Zacks Consensus Estimate by 3.3% and improved 3.2% year over year.
Although the company has maintained its 2016 revenue projection, it increased the earnings guidance to the range of $7.13−$7.33 per share from $6.93−$7.13 per share expected earlier.
Zacks Rank
Raytheon carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the defense space include Ducommun Inc. (DCO - Free Report) , CAE Inc. (CAE - Free Report) and KLX Inc. . While Ducommun sports a Zacks Rank #1 (Strong Buy), CAE and KLX carry a Zacks Rank #2 (Buy).
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Raytheon (RTN) Gets $288M Navy Contract for CIWS Upgrade
Raytheon Co. has secured a U.S. Navy contract to continue to provide conversion, system overhaul and upgrade services as well as related hardware for MK 15 Close-In Weapon Systems or CIWS.
RAYTHEON CO Price
RAYTHEON CO Price | RAYTHEON CO Quote
This modification contract, worth $288 million, will include purchases for the Navy and foreign allies comprising governments of Turkey as well as Australia, under the Foreign Military Sales (“FMS”) program. Raytheon is slated to complete work under this contract by Dec 2022.
CIWS is an automatic terminal defense weapon system that is designed to detect, track, engage and destroy anti-ship missile threats penetrating outer defense envelopes. It has two variants – Phalanx and SeaRAM – in which the former utilizes a six-barrel Gatlin gun while the latter replaces the gun with an 11-round Rolling Airframe Missile guide.
The Phalanx type of CIWS is currently installed on Navy and Coast Guard ships, and is also in use among foreign allies.
Raytheon has a distinct focus on its overseas business. The company has been witnessing a steady rise in international sales over the past few years. International bookings comprised 31% of total company bookings in the second quarter of 2016. International sales increased 8% in the quarter while 42% of the total backlog was from international customers.
Raytheon reported second-quarter 2016 adjusted earnings from continuing operations of $1.75 per share, beating the Zacks Consensus Estimate by 2.9%. Earnings also increased 6.1% from the year-ago figure. The company’s top line surpassed the Zacks Consensus Estimate by 3.3% and improved 3.2% year over year.
Although the company has maintained its 2016 revenue projection, it increased the earnings guidance to the range of $7.13−$7.33 per share from $6.93−$7.13 per share expected earlier.
Zacks Rank
Raytheon carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the defense space include Ducommun Inc. (DCO - Free Report) , CAE Inc. (CAE - Free Report) and KLX Inc. . While Ducommun sports a Zacks Rank #1 (Strong Buy), CAE and KLX carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>